This summer, many households welcomed the cool breeze of monsoon showers earlier than expected. But for India’s consumer durable makers, the early rains were far from a blessing. For companies that depend heavily on summer-driven demand for cooling products such as air-conditioners, fans, and refrigerators, the monsoon’s early onset proved to be a dampener.
Major players like Voltas, Blue Star, Havells India, and Crompton Greaves Consumer Electricals reported muted earnings for the first quarter of FY26, as the anticipated summer boost faced a setback.
The sector, which collectively contributes significantly to India’s advertising market, had already come off a strong base in FY25. According to Pitch Madison Advertising Report 2025, household durables contributed Rs 2,640 crore to the total advertising expenditure in 2024. But in Q1 FY26, even with higher promotional spends to retain consumer mindshare, companies were unable to offset the demand slowdown triggered by weather disruptions.
Revenues and profitability took a hit across the board. Voltas, the Tata Group’s consumer durables arm, reported consolidated income of Rs 4,020.65 crore in Q1 FY26, compared with Rs 5,001.27 crore in the year-ago quarter. Net profit for the June quarter stood at Rs 140.61 crore, down sharply from Rs 335 crore last year. Other expenses, which include advertising and marketing outlay, rose to Rs 449.95 crore, reflecting efforts to defend market share despite weak seasonal demand.
Managing Director & CEO Pradeep Bakshi acknowledged the pressure during the earnings call: “Of course, the promotional expenses, including advertising and also the sales costs, we had to spend a bit higher since summers were lower. And to retain our leadership position, we wanted to keep the trade and the consumers intact with our brand. And therefore, we have spent. However, as I said, it will get made up in the subsequent quarters by gaining more traction from the market.”
Blue Star too felt the pinch. Revenue from operations slightly increased to Rs 2,982.25 crore in Q1 FY26 from Rs 2,865.37 crore in Q1 FY25, but dropped from Rs 4018.96 crore in Q4 FY25. The net profit slid to Rs 120.82 crore, compared with Rs 168.76 crore in the same quarter last year. Other expenses, including advertising and marketing, increased to Rs 265.72 crore.
B Thiagarajan, Managing Director, explained the miss. “We had commenced the financial year with the hope that the summer season will be an impressive one with 25% growth during the season. But unfortunately, due to unseasonal rains, it was a disappointing summer. I had also expressed that it is not a disaster. It is a disappointing one. But the long-term prospects for the room air-conditioners business at a CAGR of 19% over the next five years should happen, and we firmly believe in that.”
He further stressed on operational prudence. “This particular disappointing summer season obviously calls for some corrective actions so that we maintain profitability, we improve our efficiency, and we do not lose momentum in terms of research and development or market expansion or talent acquisition. If a sale is not happening, you have to manage the inventory, you have to cut down the production, you have to defer the discretionary expenses. You will be very careful in expenses such as advertising and marketing ahead of the festival season.”
At Havells India, consolidated revenue stood at Rs 5,455.35 crore, lower than Rs 5,806.21 crore in Q1 FY25. Profit after tax for the quarter came in at Rs 347.53 crore, compared with Rs 407.51 crore a year ago. Advertising and sales promotion expenses were Rs 142.90 crore in the quarter, marginally lower from Rs 172 crore in the previous fiscal’s Q1.
Chairman and Managing Director Anil Rai Gupta noted that Q1 was a challenging quarter with unexpected weak summer and prolonged subdued consumer demand. The decline in cooling products revenue was more profound due to a strong base of last year.
Crompton Greaves Consumer Electricals also reported weaker earnings. Total income fell to Rs 2,022.05 crore in Q1 FY26, from Rs 2,161.47 crore in the year-ago quarter. Comprehensive income dropped to Rs 123.86 crore compared with Rs 152.36 crore last year.
CEO and Managing Director Prommet Ghosh commented: “While the industry saw a sharp slowdown, we also saw a slowdown due to the shorter than usual summer season and erratic monsoon pattern. However, the company performed relatively better, and we saw gained market share. Despite the challenging environment, on an overall basis, we have held on to our material margins.”
What stands out in this quarter is that even as toplines weakened, companies continued to invest in brand visibility and distribution. For Voltas, other expenses rose year-on-year, underscoring its defensive strategy to retain leadership in the AC segment. Blue Star too highlighted calibrated advertising and marketing spends, focusing on efficiency and targeted campaigns. Havells, with its broader product portfolio, managed to contain advertising expenses at Rs 142.90 crore, slightly lower than last year. Crompton’s commentary indicated that while revenues fell, margin preservation was a key focus area.
Industry analysts point out that the household durables category is particularly sensitive to seasonal variations, and Q1 performance is often seen as a bellwether for the year. The erratic summer of 2025 not only disrupted consumer buying cycles but also forced companies to reassess inventory management and promotional intensity.
Despite the muted first quarter, industry leaders remain cautiously optimistic about the year ahead. Blue Star’s Thiagarajan reiterated that long-term demand fundamentals remain intact, driven by rising disposable incomes, urbanisation, and growing penetration of cooling products.
The company mentioned, “While the near-term environment remains challenging, we remain confident in the underlying strength of the category and are strategically positioned and focused on navigating this phase effectively as we look ahead to a stronger demand revival during the upcoming festive season.”
Similarly, Voltas’ Bakshi expressed confidence that the company would make up for the slower summer in subsequent quarters as market traction improves.
“At an overall outlook, Voltas views the performance dip in Q1 FY2026 as temporary. Inventory normalization, tactical cost control, and a demand rebound during the upcoming festive period are expected to support sequential recovery,” said their CFO, KV Sridhar.
“I think this will pick up, hopefully, in the second half of the year, where we see that by that time, things would have settled down. With a good festive season, hopefully, we should start seeing growth in our core categories,” added Gupta of Havells India.
Analysts believe that replacement demand, coupled with festival-linked consumer financing schemes, could help lift sales momentum in the second half of FY26.
For now, the erratic summer has forced India’s consumer durables giants to rethink their playbooks. But with the festival season approaching, the industry is hoping for sunnier days ahead.
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